Apple hits record profit despite drop in iPhone sales

Has Apple broken the negativity of its high-priced iPhone X with its latest quarterly report? The holiday quarter sales were not indicative of the so-called "super-cycle". Cook said that the goal behind iPhone X was "setting up the next decade", and he highlighted the popularity of some of iPhone X's advanced tech features such as Face ID.

"iPhone X surpassed our expectations and has been our top-selling iPhone every week since it shipped in November", Cook added, allaying reports that iPhone X has not done well since its launch.

Apple shrugged off a slight year-over-year decline in iPhoneunit sales to set all time highs in revenue and earnings in the fourth quarter of 2017. Strategy around iPhone 8, 8 Plus, and iPhone X enabled Apple to overtake rival Samsung in Q4 2017. The company has continued to focus on growth outside China, with India and Russian Federation being two of its largest markets. That sharp increase in average iPhone prices is likely due to the iPhone X, Apple's highest-end phone, with a starting price of US$999. "And that is even through today, actually through January", Cook said.

The technology heavyweight reported $88.3 billion in revenue and $20 billion in quarterly profits. Revenue in these segments climbed 18% and 36%, respectively. Revenue generated by the tablets, however, rose 6 percent year-over-year, coming in at $5.9 billion.

Those customers may opt instead for older, cheaper iPhone models that Apple has kept in its lineup. Apple lost a quarter of its value in the 12 months following June 2015 as its double-digit revenue growth shrank and was replaced by double-digit declines.

The California-based colossus told investors that revenues would be between $60bn and $62bn for the three months leading to 31 March, around 13% to 17% less than expectations of $68bn.

However, investors have likely noted that Apple began to bolster its Services business over the last few years. The phone's price was apparently a significant factor for revenue in the December quarter.